With over 175 iShares Funds available and tracking different indexes, advisors can use the modularity of ETFs to create portfolios with different asset class exposures and risk profiles. iShares ETFs can provide core coverage of a chosen asset class, and wherever you apply iShares Funds, you can help bring the important benefits of cost efficiency, transparency, and help to manage the risk in your clients' 401(k) plan.

Index-based investing offers several benefits, including typically lower costs and benchmark-tracking performance. As advisors selecting fund managers know well, good active managers exist but trying to identify them in advance is challenging. It makes sense to combine them in a portfolio with index funds to help manage risk more effectively.

Demonstrate to your clients how you add value by customizing portfolios within a 401(k) plan using iShares ETFs.

Portfolio Completion One way to manage risk is to diversify across asset classes, styles, geographies, and sectors. iShares Funds give you instant diversification within virtually any segment.

Portfolio Completion

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Core/Satellite iShares ETFs can also be an effective tool in a core/satellite approach that blends index and active strategies. This strategy combines exchange traded funds at the "core" of the portfolio, with actively managed mutual funds, individual securities, or separately managed accounts as the "satellites," for each asset class in a client's portfolio. The core component seeks to match the market performance by closely tracking an index, while the actively managed satellites seek to outperform their respective targets.

Core/Satellite ¹

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